Saturday, October 31, 2020

Baht weakens

Sep 23. 2020
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By THE NATION

The baht opened at 31.38 per US dollar this morning (September 23), weakening from 31.36 at close yesterday.

The baht this week will likely move between 31.25 and 31.45, said Krungthai market strategist Poon Panichpibool.

The dollar meanwhile strengthened, compared to other currencies, with the US currency index increasing by 94 points, he said.

Some investors have avoided risk by holding the dollar, being concerned over the state of US financial stimulus policies and the Covid-19 situation in Europe. In addition, the UK has again gone in for a lockdown of sorts due to the virus.

In Thailand, the market is monitoring a key Monetary Policy Committee meeting today and expects the MPC to freeze the interest rate at 0.5 per cent.

The MPC is also expected to conclude that the economy has recovered only slightly, since tourism is still in the doldrums. 

Poon predicted the MPC would not come out with any new policy to deal with the strengthening baht.

The strategist advised investors to also monitor the US and EU purchasing managers’ indexes, to be announced today, as this could change the market atmosphere in case of positive results.

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